NHB data reveals a stark reality. Homeownership in cities like Mumbai and Gurugram is a distant dream. It could take many years, even over a century. This affects even the wealthiest 5% of earners. In Mumbai, the top earners need 109 years. Gurugram requires 64 years. Delhi needs 35 years. Bengaluru needs 36 years. This shows that buying a home is becoming very hard. It is out of reach for many high earners.
Is buying a home impossible then? Not entirely. Purchasing property in large cities is tougher now. Yet, it remains achievable. This requires smart financing choices. It also means accepting smaller spaces or different locations. A new way of thinking about property is also key.
An investment advisor, Abhishek Kumar, calls these numbers alarming. He notes they are mathematically correct. The top 5% of households in Maharashtra earn about ₹10.7 lakh annually. With a 30.2% savings rate, they save ₹3.2 lakh yearly. In Mumbai, the average home costs ₹3.54 crore. This is based on ₹30,000 per square foot. It includes an average home size of 1,184 square feet. This calculation shows it takes 109 years to afford a Mumbai home.
Mumbai is the least affordable city. Gurugram and Bengaluru face similar issues. The affordability crisis spans India’s big cities. Homes under ₹1 crore are much harder to find. Mumbai has the highest EMI-to-income ratio. Households pay 48% of their income for home loans. Ahmedabad is the most affordable at 18%.
The EMI-to-income ratio shows loan payment share. A ₹1 lakh income with a ₹30,000 EMI means a 30% ratio.